Balance Sheet Machine

byoscope

There’s no other way to say it but Bitcoin has been the amazing driver to my balance sheet this last year, definitely would be deemed Most Valuable Asset (MVA) for 2020. I have not received a paycheck going on five months but my balance sheet hasn’t stopped working. You can see that Bitcoin has picked up the slack left by my missed paychecks.

That being said I have gone back to work and have been at the new job for two weeks. It actually seems like a decent fit to my background and interests. I’ll be doing variable annuity reporting to start and will be introducing some of the VM-21 standards (statutory reserving framework) into their newish software as a longer term project. I learned all about VM-20 and VM-21 on my last exam so it’ll be nice to put what I studied to practice. Let’s get to the numbers (FYI Bitcoin was at 55,506 when I recorded these)!

10-day BS Refresh

It’s kind of bonkers that my net worth has gone up about 50% over the past year, and I’ve spent five months “frolickin’ around” and it also brings to light what is actually important in goal setting. A couple years ago I was telling myself that if I could get to 600k it would be enough but the access and liquidity matters too, if not more. Simply put right now I still don’t have enough cash flow and access to 401(k) money to totally be without a job, having gotten married and new things coming into play. I need to focus on increasing cashflow! I need to convert some of this good net worth that’s been generated into cashflow and focus on getting my retirement funds more accessible, without paying the penalty, to amplify opportunities when they come around. I’m struggling because I still think Bitcoin is undervalued, and thus don’t want to sell, but at the same time don’t want to be pinned by the government through taxation in some fashion (can’t even fathom how angry I would be if they started taxing unrealized gains). If Bitcoin were to get to be enough to pay off the mortgage on my house I don’t know if I could resist selling, even though I would still find it undervalued at that price, in todays dollars. I think others could be experiencing the same thoughts.

Analysis Intelligence

The Opening NW in the 2/20/2021 column is the closing NW from the 2/10/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 2/20 column are the changes that I estimated on 2/10). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior. For example, my cash has been taking a hit with all my MI taxes getting paid (shown in the above green cell “Exp Cash”) but I also spent even more than I thought I was going to because I decided to hire some accountants, that specialize in real estate, and found out I won’t get paid till next week (shown in the above white cell “Gain from Cash”). The big drivers to my net worth over the last ten days were Bitcoin and my NC house:

Crystal Ball

I will say that it will be nice to get a paycheck for the first time in about five months! I’m also starting to think that my Bitcoin projections may not be aggressive enough with what we’re seeing with corporations plugging into the Bitcoin network. On that note I watched a great video on how Bitcoin could go to one million dollars and how a similar cycle could take it to zero dollars afterwards. I thought the game theory in this video was very interesting to think about: Is Bitcoin Going To $1,000,000 Or $0.00? (Answer Will Shock You!) – YouTube

I also just wanted to note for the UK viewers, at amazon.co.uk, we’re doing a promotion on my e-book for this week Make Better Bets: An Actuary’s Quest to Bet the Russian 2018 FIFA World Cup with Excel eBook: Allweil, Jack: Amazon.co.uk: Kindle Store

Ideas for increasing NW/Learning

  • Kick off Amazon ad campaign and track progress for book sales
  • Working on getting medical collections at two of the three credit bureaus removed (can’t believe I didn’t realize these were still on), to increase credit when requesting next home purchase/refinance/HELOC
  • I’m getting underwritten on Tuesday for an overfunded whole life policy (infinite banking policy) and think I can contribute about 6k per year for the next ten years.
  • Finish my actuarial modules so I can get my FSA, deadline is April 9th (will be a 7k increase in salary once I get my FSA)
  • Revisit Tax Liens
  • Learn about Salesforce
  • Start analyzing how affiliate programs really work
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well. Should I just control the book sales in the same corporation as my real estate in Michigan?

Notes:

Upcoming Posts:

  • Infinite Banking Mechanics
  • Term and Whole Life Insurance Mechanics
  • Selling Covered Calls for Passive Income

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